A Study On Earnings Management Of Listed Companies Based On The New Accounting Standard

In recent years the earning management has become a hot topic in financial affairs. The universal existence of earning management has been confirmed by many domestic and foreign scholars'researches. The article reviews the present situation and the tendency of earning management by empirical and financial analysis methods, combining the new accounting standard issued on Feb 15, 2006 by Ministry of Finance.After analyzing the characteristics, origin and objective of the earning management, the paper regards that it exists the space produced by earning management. Our national accountant system has experienced many times reforms. The new issued accounting standard has been concerned by publick. The great changes of clauses were made in new accounting standard, such as"the fair value""The inventory management""the debt reorganization""the property depreciation preparation"and so on. All these adjustments will have the positive effects and the influences to the information disclosure by the companies in the financial market. This article put emphasis on the discussion about the present situation of earning management and the effect brought by the new accounting standard through empirical and financial analysis method. The paper finds the"share matching"and"the meager profit"phenomena in earning management and concludes the characteristic and tendency of the earning distribution, by quoting the data published in the annual report from 2001 to 2004. The biggest changes in new accounting standard is the property depreciation. Through the case analysis to Sichang ChangHong company and the statistical analysis to the related data of the listed from 2001 to 2004, it has been confirmed that the listed have used the property depreciation preparation to operate its surplus. Therefore, the new accounting standard will be more accord with our country's present situation, which does not allow to return the property depreciation.The new accounting standard will made great effects on the companies in financial market. In this article, the author proposes some individual opinions about the regulations and restrictions of the behaviors of earning management, which also are the attentions of the management departments and local governments.